President Obama is on the brink of a breakthrough deal that would allow him to announce the resumption of long-stalled Middle East talks, Britain's Guardian newspaper reported, citing unnamed officials.

According to the paper, U.S., Israeli, Palestinian and European sources close to the discussions have said the announcement of resumed peace talks would come within a month.

Key to the deal is a U.S. promise to take a harder line with Iran over its nuclear weapons program, the Guardian said. The U.S., along with Britain and France are planning to push the U.N. Security Council into expanding sanctions to include Iran's oil and gas industry, which would cripple the nation's economy, the newspaper reported.

The Israeli government, in return, would be expected to impose a partial freeze on settlement construction in the West Bank.

"The message is: Iran is an existential threat to Israel; settlements are not," the newspaper quoted an official as saying.